SINGAPORE: Inflation in Singapore is expected to decrease as the central bank kept its monetary policy unchanged on October 14.
Core inflation, excluding accommodation and private transport, has dropped and is projected to be around 2% by the end of 2024.
The Monetary Authority of Singapore (MAS) noted a pickup in growth momentum and stated that the economy should remain close to its potential growth path into 2025, assuming global demand stays stable.
This marks the sixth consecutive time the MAS has maintained its policy. They also decided to keep the Singapore dollar’s nominal effective exchange rate policy unchanged.
According to a Reuters poll, nine out of ten analysts expected no changes in policy.
Singapore’s monetary policy is based on exchange rates, unlike many other countries that rely on interest rates. The MAS allows the Singapore dollar to fluctuate against its main trading partners’ currencies within a band that is not publicly disclosed.
MAS last adjusted its policy in October 2022 by changing the band’s mid-point.
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